Good News! Obamacare Will Cost Less than Projected

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As long as we’re on the subject of healthcare, have you heard about the conservative discovery that Obamacare is going to cost $111 billion more than originally projected? No? Good for you. It means you have a life.

But I don’t, and in case you have heard about this you might also want to hear the actual story. Jonathan Cohn has you covered:

After the Affordable Care Act became law, the administration became aware of a glitch in the law….Congress responded by amending the law, to redefine who would be eligible for Medicaid.

….As a result, some people who would have gotten their insurance through Medicaid will now get their health insurance through the new exchanges….That makes the overall cost of subsidies a lot higher. Throw in some changes in economic forecasting, and you get that extra $111 billion in subsidies.

But that’s only half the story! The cost of subsidies has gone up, because more people will be getting insurance through the exchanges. But the cost of Medicaid has gone down, because, among other things, fewer people will be getting coverage through that program. Overall, the administration now projects the ten-year Medicaid cost to decline by $272 billion.

So, um, subtract two, carry the one, and….you end up with net cost reduction of $161 billion over ten years. The actual number might end up being different once the accounting boffins grind all the way through their spreadsheets, but it looks a lot like it’s going to be negative.

It’s worth pointing out, once again, the object lesson here: Obamacare isn’t perfect. It’s not set in stone. Stuff is going to go wrong and it’s going to get fixed. In a few cases, like the CLASS Act, things just aren’t going to work out and some element of the law will be abandoned. In other cases, like this one, mistakes will be corrected and costs will change modestly either up or down. And in still others, there’s really nothing wrong at all and conservatives are just trying to gin up some faux outrage. So take everything you hear with a grain of salt. Every big bill has problems, and those problems get addressed as implementation goes forward. Obamacare will be no different.

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We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

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